ACC 202 Exam 3 (CH14 Long-Term Liabilities) |
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Latest Update 2026/2027
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Terms in this set (57)
long-term liabilities liabilities that do not need to be paid within one
year or within the entity's operating cycle,
whichever is longer
where are long-term liabilities on the balance sheet under long-term liabilities
reported?
common long-term liabilities > long-term notes payable
> mortgages payable
> bonds payable
long-term notes payable the principal amount is paid periodically (annually)
in installments
mortgages payable long-term debt that is backed with a security
interest in specific property
what do long-term liabilities make amortization schedules
use of?
, amortization schedule details each loan payment's allocation between
principal and interest and the beginning and
ending loan balances
principal amount calculation (only for total cash payment - interest expense
mortgages payable amortization
schedule)
total cash payment calculation (only principal amount + interest
for l-t notes payable amortization
schedule)
ending balance calculation beginning balance - principal payment
why do you only subtract the because any amount that went towards interest is
principal payment from the ending not going to reduce your principal
balance calculation?
what happens to the principal > principal payment: STAYS THE SAME
payment and the total cash payment > total cash payment: CHANGES
in a long-term notes payable
amortization schedule?
how are mortgages payable paid? paid most likely in MONTHLY INSTALLMENTS OF
PRINCIPAL AND INTEREST to the lender
what happens to the interest > interest expense AND principal payment:
expense, principal payment, and the CHANGES
total cash payment in a mortgages > total cash payment: STAYS THE SAME
payable amortization schedule?
how can long-term liabilities be with any equal principal payment OR equal total
structured? cash payment
Questions with 100% Correct Answers | Verified |
Latest Update 2026/2027
Save
Terms in this set (57)
long-term liabilities liabilities that do not need to be paid within one
year or within the entity's operating cycle,
whichever is longer
where are long-term liabilities on the balance sheet under long-term liabilities
reported?
common long-term liabilities > long-term notes payable
> mortgages payable
> bonds payable
long-term notes payable the principal amount is paid periodically (annually)
in installments
mortgages payable long-term debt that is backed with a security
interest in specific property
what do long-term liabilities make amortization schedules
use of?
, amortization schedule details each loan payment's allocation between
principal and interest and the beginning and
ending loan balances
principal amount calculation (only for total cash payment - interest expense
mortgages payable amortization
schedule)
total cash payment calculation (only principal amount + interest
for l-t notes payable amortization
schedule)
ending balance calculation beginning balance - principal payment
why do you only subtract the because any amount that went towards interest is
principal payment from the ending not going to reduce your principal
balance calculation?
what happens to the principal > principal payment: STAYS THE SAME
payment and the total cash payment > total cash payment: CHANGES
in a long-term notes payable
amortization schedule?
how are mortgages payable paid? paid most likely in MONTHLY INSTALLMENTS OF
PRINCIPAL AND INTEREST to the lender
what happens to the interest > interest expense AND principal payment:
expense, principal payment, and the CHANGES
total cash payment in a mortgages > total cash payment: STAYS THE SAME
payable amortization schedule?
how can long-term liabilities be with any equal principal payment OR equal total
structured? cash payment
